International students who began higher education courses in the UK in 2024/25 at the University of Chester are expected to bring a net economic benefit to the area of more than £100 million during the course of their studies.
The striking figure has been calculated by London Economics as part of a new national report published by the Higher Education Policy Institute (HEPI) and Kaplan International Pathways.
International students generate a net economic benefit
The new report highlights how international students are an integral part of the UK’s world-class higher education sector, with the 2024/25 cohort of students generating a net economic benefit of £40.4 billion over the course of their studies – equivalent to about £1 million per 10 students, or around £580 for every UK resident.
With an estimated 1,000 first-year international students living in the two parliamentary constituencies of Chester North and Neston, and Chester South and Eddisbury, it means those University of Chester students generate a net economic benefit of £101.4 million during their studies. Further positive economic benefit to the region is generated from international University of Chester students living in, and commuting from, term-time addresses such as Liverpool, North Wales, Cheshire East and Manchester.
The economic benefits generated by international students were calculated from tuition fee income, living costs and the spending of friends and family visiting international students while studying in the UK. They do not take into account the tax revenues generated from international students while in employment during or after their studies.
Even taking public spending on students into account
The UK total economic benefit figure of £45.1 billion is subtracted by £4.7 billion of public costs associated with hosting international students, such as NHS healthcare and primary/secondary education received by dependent children, to reach the net economic benefit of £40.4 billion – a benefit-to-cost ratio of 9.7 to 1.
However, the report warns a 12% decline in the number of first-year international students coming to the UK since 2022/23 has reduced the net UK economic benefit by £2.9 billion, equivalent to 23,300 full-time jobs.
Immigration has substantial benefits
Rose Stephenson, Director of Policy and Strategy at HEPI, said:
Immigration is a top concern for voters in Britain, and it is important that the debate around immigration policy is informed by evidence. This report shows that international students generate very substantial benefits for the UK economy and underpin the financial sustainability of many universities.
Maike Halterbeck, Partner at London Economics, added:
This new report provides updated evidence on the substantial economic value that international students bring to the UK economy – value that is spread widely across the country. However, it also demonstrates what the economy stands to lose if and when this major export sector starts to decline.
A significant contribution
Dr Helen Galbraith, Senior Pro Vice-Chancellor and Chief Operating Officer at the University of Chester, said:
International students make a significant contribution to the University, our city and the wider region. Alongside the economic benefits highlighted in this report, they enrich our learning community through the diverse perspectives, experiences and cultures they bring.
As a university with a strong commitment to supporting students from across the world, we are proud of the role we play in attracting international talent to Chester and helping students develop the skills and knowledge they need to make a positive contribution to society and the economy.
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